Chapter 1 Review: Key Concepts and Terms

Question 1

Define Marketing

Answer 1

Marketing is about understanding the needs of the customer. No other aspect of business has this focus. Marketing helps to shape a firm’s products and services based on an understanding of what the customer is looking for. Marketing is about engaging in a conversation with that customer and guiding the delivery of what is required to satisfy those needs.

Question 2

Describe the evolution of marketing

Answer 2

Marketing has been created by an evolution in the use and application of marketing techniques in firms over many decades. The five orientations of marketing are the production orientation, the sales orientation, the marketing company orientation, the societal marketing orientation, and the relationship marketing orientation. Each one developed a new aspect of what we now know as marketing and contributed to how many view marketing today.

Question 3

Define in the context of marketing:

Exchange

Answer 3

People giving up one thing to receive another thing they would rather have.

Question 4

Define in the context of marketing:

Customer Value

Answer 4

The relationship between benefits and the sacrifice necessary to obtain those benefits

Question 5

Define in the context of marketing:

Market Segments

Answer 5

Groups of individuals, families, or companies that are placed together because it is believed that they share similar needs.

Question 6

Define in the context of marketing:

Relationship building

Answer 6

Companies can expand their market share in three ways: attracting new customers, increasing business with existing customers, and retaining current customers.

Question 7

Define in the context of marketing:

Marketing

Answer 7

The activities that develop an offering in order to satisfy a customer need.

Question 8

Define in the context of marketing:

Need

Answer 8

A state of being where we desire something that we do not possess but yearn to have.

Question 9

Define in the context of marketing:

Production orientation

Answer 9

A focus on manufacturing and production quantity in which customers are meant to choose based on what is most abundantly available.

Question 10

Define in the context of marketing:

Sales Orientation

Answer 10

Hard selling the customer, who has greater choice thanks to more competition in the marketplace

Question 11

Define in the context of marketing:

Marketing company orientation

Answer 11

A strong emphasis on the marketing concept and development of a more comprehensive approach to understanding the customer

Question 12

Define in the context of marketing:

Societal marketing orientation

Answer 12

Looking not only at the customer but expanding marketing efforts to include aspects from the external environment that go beyond a firm’s customers, suppliers, and competitors.

Question 13

Define in the context of marketing:

Customer satisfaction

Answer 13

Customer’s evaluation of a good or service in terms of whether it has met their needs and expectations

Question 14

Define in the context of marketing:

Relationship marketing

Answer 14

A strategy that focuses on keeping and improving relationships with current customers

Question 15

What is the “marketing mix” (AKA the 4Ps of marketing?)

Answer 15

Product, price, place, promotion

Question 16

Marketing mix / 4Ps continued:

What is meant by “product”?

Answer 16

Product relates to the tangible and intangible aspects of a company’s offering. A product could be a can of soup or a virtuoso ballet performance; both companies will need to look at what needs are being satisfied and how to best package all the aspects of the offering so that the customer will be satisfied.